Home > Blogs > Jim Steccato > Jim Steccato's (jsteccato) Blog

A Question for Veterans Agents out there and a Notice to New Agents.

By Jim Steccato

Real Estate Agent with Keller Williams NJ Metro Group

October 24, 2008 02:11 PM

First for the new agents.

The market is going to pop sooner or later and when it does the one who holds the inventory wins!!

Stop chasing buyers and go after the listings. The time you're wasting carting buyers around can be used to prospect. Don't worry about finding buyers right now List and the buyers will come to you!!

I know you've heard and read that a million times since you've started in this business but I really do believe it's more important now than ever. Take it from someone who started out in this business just servicing buyers, at that time I didn't have a problem making it with buyers alone.

It was always great to be a listing agent and have the buyer agents sell the inventory for them but the times? They are a changin. In One Word "INTERNET"

The internet was feared to totally eliminate the real estate agent a few years ago, it hasn't done that exactly but I'm thinking it's altered the way real estate is being sold. It does seem some agents are getting removed from the process or they are finding it harder to make a go of it. In my market area we've lost something like 25% of the agents that were around just a year ago it looks like it's affecting the buyer agents more and more. That usually means new agents.

All I hear from them is that no one is buying or that they can't get their so called clients off the fence just to find out a few weeks later they actually did buy something. There are a lot of sales going on out there; people are buying so someone has to be selling....

Existing Home Sales Rise by Largest Amount in Five Years

Good news! The National Association of Realtors reported Friday that sales of existing homes rose by 5.5 percent in September compared to August. This is the largest gain since a 5.6 percent increase in July 2003, and is viewed by many as evidence that the housing market is improving.

I am wondering if the veteran agents out there are noticing something.I wanted to see if any of you agree or can back me up on this

If you haven't yet, check your MLS, see who is selling, maybe this is happening to you too I've noticed a difference in my own business.

In my market I'm seeing more and more that listing agents are selling a lot of their own inventory.

Between the interior photos, virtual tours,satelite photos and the ability to go on google and actually do a virtual drive down the street to see the neighborhood they are considering,listing agents seem to be getting the calls directly from people who are browsing the real estate websites out there. They are really narrowing down the homes in their price range on their own and sliming down the choices without the assistance of a buyer agent.

Buyers just pick up the phone while they're online, pass a sign or bounce from open house to open house, they do believe they will get a better deal that way I've heard them say it.

I've also noticed that my dialog has had to change when talking to people calling me from these sources so I can capture them as loyal buyers.

That's because they intend on calling the listing agent to set an appointment to see the next house on their list. If you're new, do yourself a favor..... Get the listings, and purchase personalized signs with your cell number on it. Ask listing agents in your office if they want to have you hold an open house for them most buyers think that the agent holding the open house is the listing agent anyway.

It seems the old adage applies a lot more these days "List or Die"

Good news for all the listings agents out there and time for you newer people to adjust your business model.

Good luck to you all out there!

Comments(8)

Comment

Show All Comments

Sort:

Robin Scott

Robin Scott, REALTOR® - Austin, TX

Broker, REALTOR® - Austin Texas

What I have seen in my area is more home buyers who think they don't need a Realtor because they can research for info and listings on line and think they can go directly to the listing agent and get the price reduced by the buyer's agents commission by not having an agent.

Oct 24, 2008 02:20 PM

Maria Morton

Platinum Realty - Kansas City, MO

Kansas City Real Estate 816-560-3758

Great info, Jim, thank you! Can you give me an example or two of how exactly your dialogue has changed?

Oct 24, 2008 02:21 PM

Vickie McCartney

Maverick Realty - Owensboro, KY

Broker, Real Estate Agent Owensboro KY

Jim~ I know a lot of agents are thinking it costs too much to have listings because you have to spend time and money on them, but if you have listings, buyers tend to call YOU too! I love listings, love marketing them on the internet and working with sellers!

Oct 24, 2008 02:24 PM

MeLisa Minter, Realtor

Minter Real Estate Services - Taylor Lake Village, TX

Bay Area Houston Real Estate Agent

Jim, you're absolutely correct.

I've only been in the business for a year and a half and when I initially started, I only wanted to work with buyers. Well if you notice, I came in the business just as things were getting a bit ugly for real estate.

My then broker had always stressed how important listings were. She would always say, you get the listings and the buyers will come. Well as soon as I got a couple of listings, I did start to get phone calls from interested buyers.

I have a friend who is a veteran agent that has the same mentality that she did 15 years ago- that she only works with buyers. But for some reason, she hasn't realized that the buyers come from the listings signs.

My broker would also stated that when she first got started in real estate that there was a saying in her office, which was "You need 5 to stay alive." That meant if you had at least five listings you could survive the business because of the phone calls from interested buyers in regards to those listings.

It all makes perfect sense to me now. So right now I'm trying to develop a strategy to capture the buyers that call on my signs and try to offer them something of value that will stop them from calling on the next agent's sign.

Great Post.

MeLisa Minter, Realtor

www.homesmint2be.com

469-766-7379

Oct 24, 2008 02:39 PM

Earl Johnson

Fort Lauderdale, FL

So true, so true... this is the first time I hear a Realtor say, "Stop chasing buyers and go after the listings."

Oct 24, 2008 02:40 PM

Linda Lipscomb

Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN

731-695-1118, Lexington TN Homes

It'sgood to hear.

So many agents don't want to be listing agents. No budget.

Oct 24, 2008 02:44 PM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

When I first got into real estate, my broker always told us that listings were the bread and butter of this business. This still holds true today. Thanks.

Oct 25, 2008 01:38 AM

Jim Steccato

Keller Williams NJ Metro Group - Cedar Grove, NJ

Thanks for all your responses.

It was late last night when I posted and didn't expect a quick response. Maybe I can answer all the questions or concerns in one post

1.) Marketing costs

I know it can be cost prohibitive in a slow market. Depending on your company there aren't many solutions I can suggest. Agents in other companies that I know are responsible, out of their own pocket for marketing or they are limited to the office budget. I'm sure many of you have a good split but that doesn't help to market something for six months if you have to keep pulling money out of your account before it even closes. All that does is reduce the amount of marketing you do over time on the property and in turn that reduces the odds of it selling. This just creates a vicious circle that feeds on itself.

My solution? You may want to consider changing companies I suggest my own lol... but I am bias I'm a company guy I contract at Weichert and I bleed black and yellow. There is a good reason for that especially now. It's MARKETING. Agents at Weichert don't have a limit on budget whether its day 1 or day 180 it never changes. Its not a personal budget or even an office budget, it's a company budget. Our agents don't pay for advertising and marketing unless you'd like to go above and beyond. As for myself it also helps me get more listings at a full commission, I never discount mine it's a minimum of 6% unless they do a buy sell from me and that is questionable unless they really press me for it. I don't have to discount and very rarely lose on a listing because I can promise this to every one of my clients. Unless the competition buys the listing from them, thus making it less saleable but that's a story for another time........I get recruited all the time but they can never promise me the tools to service my clients that I have at Weichert I don't like making promises that I can't keep that's why I'm not going anywhere.

The company you sub-contract for has to have a huge web presence it has to cater to buyers its up to the agent to get the listings and up to the company to solicit the buyers and capture them.

Anyway enough about Weichert... All I'm saying is that it's really the marketing of the company you are with that can be the solution for your expense problem. If any of you want to learn more about us feel free to email or call me no matter what state you're in I can set up an interview for you anywhere there is a Weichert office.

2.) Time:

Vickie: You mention time but if they make the listing saleable there is no time spent. Consider the time you spend on your listings as apposed to the time they spend doing searches for buyers, emailing them, calling them, showing them properties ect. and that's before they get into contract with them. Then all the time spent servicing the transaction. Buyers end up controlling all their time when that time can be spent more productively prospecting.75% of business should be listings and only 25% on sales if its not you aren't in control of your time or your life.

3.) Dialogue

Maria Well as far as that goes. First if they are calling on your listing and they want to see it show it to them of course nothing needs to be said it's after that when the dialogue kicks in.

It's all in the delivery it needs to be humorous, if they say they aren't interested then kind of chuckle (that is important) and say "Well to tell you the truth you'd never want to buy a listing through the listing agent anyway. That will always solicit a "WHY?"

I tell them that's because the listing agent has built months of rapport and loyalty with the seller and the agent has met you once. They aren't going to be fighting for you, they are going to try and get the best price possible for the seller "You'll never get the best deal possible that way".

Then ask them how they've been searching for a home. If they say calling off signs, the internet and going to open houses that's when you point out what a big mistake they are making because as buyers they don't have anyone working and representing their interests above anyone else's. It's important for them to have representation.Say "if you see a sign,an add in the paper or on the net call me because I want to represent you and get you the best deal possible,You really need someone working in your best interest". Open house? They should have a stack of your cards after the first meeting, if they visit an open tell them to make sure they let the listing agent know they are being represented by you and instruct them to give that agent your business card. If you lock them up correctly open houses shouldn't even be an issue let them know that they are missing out on 95% of the available homes by searching that way.

Just a word of caution if your client does want to make an offer on a property they visited during an open house make sure you go back there with them on a regular appointment many agents will honor that,I do, but you don't want any argument as to which agent was the procuring cause for the sale.Ive seen agents go to arbitration over this and even if you had an exclusive buyer agency agreement with them in reality it won't hold much sway with the board.

I hope i've answered some of your questions and was some help.

Sorry for the long windedness

Best reagrds......

Oct 25, 2008 07:05 AM